Michigan Tax Amnesty And Tax Returns Guide And Instructons Page 9
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41SUBTRACTIONS
- cable franchise fees paid to units of government;
Subtractions are generally subtracted to the extent
included in arriving at business income, line 11.
- film rental payments made by a theater owner to a
distributor or to a producer;
Line 28, Dividends, Interest or Royalty Income. Enter
dividends, interest and royalty income included in the
- payments made by radio or TV broadcasters for
business income reported on line 11.
syndication or royalty fees, or any other charges for
program matter;
Do not include:
- computer software royalties deducted.
- dividends allowed as a dividend-received deduction on
a federal return;
Line 21, Capital Loss Carryover or Carryback.
- oil and gas royalty income;
• Fiduciaries and Corporations. Enter any capital loss
- initial franchise fees and new for tax years beginning
carryover or carryback from your federal schedule that
after 12/31/2000, royalties, fees and other payments or
was included in the business income reported on line
consideration paid or incurred by a franchisee to a
11. This cannot be a negative number.
franchisor to establish or maintain the franchise
Line 22, Net Operating Loss Carryover or Carryback.
relationship;
• Fiduciaries and Corporations. Enter any net
- interest income received by a financial organization.
operating loss carryover or carryback that was
Exception: Interest from U.S. obligations that
included in arriving at business income reported on
Michigan is prohibited from taxing may be included;
line 11. This cannot be a negative number.
- film rental payments made by a theatre owner to a
Line 23: Gross Interest and Dividend Income. Enter
distributor or to a producer;
any income from bonds and similar obligations or
- payments made by radio or T.V. broadcasters for
securities of states other than Michigan and their political
syndication or royalty fees, or any other charges for
subdivisions. Include only the income derived from your
program matter;
business activity. You may subtract from this income-
- computer software royalty income
related expenses, if those expenses were not allowed as
Exception: System software which interacts with
deductions on your federal return (IRC Sections 265 and
operating system software and is developed, licensed
291).
and intended for the exclusive use of data processing
Line 24, Special Classifications Deduction.
professionals to build, test, manage or maintain
• Corporations - Enter any deduction or exclusion by a
application computer software. System software may
filer due to a classification as, or the payment of
not be transferred as part of, or in conjunction with, a
commissions or fees to, a domestic international sales
sale or lease of computer hardware. System software
corporation (DISC), foreign sales corporation (FSC) or
royalty income may be included as a subtraction on
any similar special classification which reduces or
line 28.
postpones federal income tax liability. This does not
Line 29, Excluded Capital Losses. Enter any capital
apply to special provisions of IRC sections 805, 809,
losses not included in arriving at federal taxable income
815(c)(2)(A), 823(c) and 824(a).
in the year the loss occurred.
Financial Organization Expense Addback. Enter
Line 30, Income from Partnerships. Enter income
total expenses deducted in arriving at federal taxable
attributed to another taxable entity included in the
income, less expenses which are added in determining
business income reported on line 11. Enter the FEIN(s)
the SBT tax base, times the following fraction:
of the partnerships, S-corporations, or LLCs.
Interest from U.S. obligations that
Interest on
TAX BASE
+
Michigan is prohibited from taxing
Michigan obligations
Line 32, Tax Base. Tax base is business income or loss
Total interest income
on line 11, plus compensation on line 16 and additions on
The result cannot exceed interest from U.S. obliga-
line 26, and minus subtractions on line 31.
tions subtracted in arriving at the tax base.
If you are taxable in another state, complete SBT
Line 25, Losses from Partnerships. Enter any losses
Apportionment Formula (Form C-8000H), page 33,
attributed to another taxable entity included in the
before continuing. Attach completed schedule to your
business income reported on line 11. Enter the FEIN(s)
return.
of the partnerships, S-corporations or LLCs.
Line 33, Apportioned Tax Base. If taxable in another
state, multiply line 32 by the percentage from Form
C-8000H, line 16 or 19, whichever applies.
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